10.1 As set out in the consultation document, trade and
investment is another part of the 'development toolkit'. Question
19 asked respondents about their views on supporting sustainable
growth in partner countries and encouraging trade and investment
links with Scotland.

Question 19: Scottish Government's ambition in its
international development programme is to support sustainable
growth in our priority partner countries, and to encourage better
trade and investment links between these countries and Scotland.
Please share any views you have on how this ambition might be
achieved.

10.2 A range of examples of good practice were identified in
relation to trade and investment links between partner countries
and Scotland. In particular, mention was made of the good work of
the Scotland Malawi Partnership, of Just Trading Scotland, and of
UNICEF's
Water Sanitation and Hygiene (
WASH)
programme.

10.3 The main substantive themes identified by respondents in
relation to this ambition were: the importance of the 'policy
coherence for development approach'; support for and access to
expertise and finance; and infrastructure development support. In
addition, respondents emphasised that the approach adopted should
fit with the core principles of international development funding.
Each of these topics is addressed in turn below.

Policy coherence for development

10.4 Respondents from all organisational types emphasised the
importance of implementing a 'policy coherence for development' (
PCD)
approach. It was thought that this cross-departmental approach,
would allow the aid and trade dimensions of international
development to be joined up, and would offer the greatest potential
for maximising the benefits of trade for job creation and inclusive
growth. Only by taking a cross-cutting approach would it be
possible to deal with issues such as import and export tariffs, and
trade rules more generally. This topic is discussed further in
Chapter
11 ('Beyond Aid').

Enhanced access to expertise and finance

10.5 Respondents identified a variety of issues on which partner
countries would need support and expertise including: finance and
access to capital; intelligence on markets and emerging markets;
logistical support; product specifications for trading with
Scotland; and business models including micro-credit and circular /
shared business. Respondents also suggested that access to
affordable (micro) finance for developing businesses was key.

10.6 In some cases it was argued that this support was required
for partners in Scotland as well as those in the host country.

Support for infrastructure development

10.7 Support for infrastructure development across a wide range
of areas -
e.g. transport; building,
including schools; renewable energy;
IT - was thought
to be vital to achieve the Scottish Government's ambitions. These
developments would in turn support access to education and training
which was required to build better trade and investment links.

Fit with core principles

10.8 Underpinning all these substantive comments was an
insistence that the development of trade and investment had to
comply with the core principles of international development
funding. Thus, poverty alleviation and the promotion of human
development should be central. Moreover, all developments should be
congruent with the objectives of the partner country, should be
done in partnership and be inclusive, and should be aimed at
developing sustainable, fair trade.

Other suggestions

10.9 Other suggestions included:

The Scottish Government should fund a fair trade organisation
to advocate for trade rules that would make import of value-added
products more likely.

An information / media campaign should be commissioned to
educate the public about international development and making
positive choices in relation to consumer decision-making.

Caveats and disagreements

10.10 A small number of respondents did not agree with the
premise of the question, and offered a number of views:

The
IDF
should be ring-fenced for non-commercial development work.

International development and trade were competing priorities
and could not both be achieved.

It was not realistic to deliver this ambition on any
substantial scale.

Focusing on exports to Scotland was not appropriate; trading
regionally was more beneficial.